Mitsui Fudosan Accommodations Fund (3226) Q2 2027 earnings summary

Executive summary

• 41st Period revenue was ¥14,592mn, net income ¥6,835mn and DPU ¥2,445, ¥48 above forecast; internal growth and property-sale gains supported earnings and distributions.

• Portfolio totaled 143 properties with an acquisition price of ¥355.6bn; average occupancy was 97.2%, and 88.6% of rental-apartment value was in Tokyo’s 23 wards.

• Rental-apartment occupancy at period-end was 96.6%; turnover rents rose 15.2%.

Financial highlights

• Revenue rose 6.3% to ¥14,592mn and operating income rose 9.2% to ¥7,524mn from the prior period; net income was ¥6,835mn, up 7.6%.

• Revenue increased ¥865mn and net income ¥482mn from the 40th Period; property-sale gains rose ¥476mn to ¥888mn.

• Net income per unit was ¥2,715, up ¥192; DPU was ¥2,445, up ¥40 from the 40th Period, with a 90.1% payout ratio.

• Rental revenue increased to ¥13,703mn from ¥13,314mn, and property-leasing NOI rose to ¥10,189mn from ¥9,952mn.

Outlook and guidance

• 42nd Period forecast: revenue ¥13,927mn, operating income ¥6,896mn, net income ¥6,001mn and DPU ¥2,453.

• 43rd Period forecast: revenue ¥14,272mn, operating income ¥7,036mn, net income ¥5,940mn and DPU ¥2,479; forecast occupancy is 97.1%.

• Forecasts assume 145 properties, no further property transfers or unit issuance through August 2027, and debt of ¥176,700mn at both period-ends; no excess-earnings distributions are planned.

• DPU forecasts assume 3% annual growth using retained earnings; the longer-term target is continuous DPU growth at a CAGR above 3%, with asset recycling and growth potentially adding upside.